Overview
- The 2026 Revised Budget cut the sales tax on low‑alcohol drinks from 251% to 120% for 0.5–10% ABV and to 175% for 10–20% ABV, creating the issue that triggered the dispute.
- Chief Minister V. D. Satheesan has stressed the Budget only set a tax framework and said final approval for sales will follow discussions within the United Democratic Front and a new liquor policy.
- Excise Minister M. Liju has directed that brand registration applications be rejected for now and said no sale can begin until the liquor policy and excise clearances are in place.
- Senior Congress figures including V. M. Sudheeran, UDF partners, religious leaders and temperance groups have demanded withdrawal or clearer safeguards while student protests in Thiruvananthapuram were dispersed by police.
- The opposition CPI(M) and the BJP allege the move could favor liquor firms and cost the exchequer roughly Rs 600 crore, while officials note that actual sales would still require brand approvals, rule changes and a formal policy.